Question: Consider the following table: Expected return on stock A 15 Expected return on stock B 9 Beta of stock A 1.5 Beta of Stock B
Consider the following table:
| Expected return on stock A | 15 |
| Expected return on stock B | 9 |
| Beta of stock A | 1.5 |
| Beta of Stock B | 0.5 |
Assume that the CAPM holds. What is the risk free rate?
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